Instant Matic->sushi bridge, fees directed to xSushi holders

tl;dr

Create near-instant plygon->ethereum bridge for $Matic token at ~2% fee;
0.5% will go to xSushi holders, 1.5% to liquidity providers.
no impermanent loss

Motivation

Matic/Polygon is the most liquid sidechain/scaling solution for ethereum as of now.
There’s huge demand for fast $Matic token transfers from Polygon to Ethereum, because of Plasma limitation that requiers ~7 days wait time to eliminate double-spending.
Persistent arbitrage disparity of 4-7% will be primary force driving demand for the proposed bridge.

Specification

The user must have the same address on both networks.
The user initiates a deposit to the bridge’s escrow contract on polygon. The bridge contract initiates withdrawal via Plasma matic bridge.
The user receives a confirmation of deposit and the key to redeem corresponding amount of $Matic ERC-20 tokens minus 2% fee.
The user redeems $Matic ERC-20 tokens
After 7 days, our LPs will receive full deposit that cleared through Plasma bridge. 0.5% goes to xSushi, 1.5% is deposited into the pool and becomes available for more bridging.
.
User deposits 100 $Matic to our bridge. There’s 100 $Matic deposited by LPs on ethereum.
User withdraws 98 $Matic ERC-20 tokens. There’s 1.5 $Matic in the pool, 0.5 $Matic goes to sushibar.
7 days pass.
Plasma bridge clears. The LPs now have 100+1.5 = 101.5 $Matic
.
Important caveat - if an LP requests a withdrawal, it will be processed only once Plasma deposit clears. Would’ve been nice to employ some sort of MM to borrow ERC-20 tokens in exchange for polygon network tokens, but alas.

For

  • 0.5% of bridged volume goes to xSushi holders.
  • Low risk ~78% APR for liquidity providers with no impermanet loss

Against

  • competing bridge solutions arising daily
  • Arbitrum or another L2 takes over as most liquid scaling solution
  • Matic devs figure out how to make plasma withdrawal instant
Cast your vote
  • Yes, please
  • No, thank you

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